The ZSL (-2x short silver ETF) effectively* hit the first price target, T1 for a quick 26% gain, although I favor a full tag & punch through it later today or next week. Previous (Monday) & updated 60-minute chart, with pre-market trades denoted with the white candlesticks, below:
ZSL 60m Jan 26th
ZSL 60m Jan 30th
*ZSL has come within 7 cents of 2.26 so far in the pre-market sessions. As always, the price targets on the charts of trade ideas are the actual resistance levels where a reaction is likely upon the initial tag… always best to set one’s sell limit order slightly below the actual resistance level(s) they are targeting.
Likewise, /SI (silver futures) triggered the expected sell signal & is currently approaching the first target after a pre-market session bounce off price support in SIL, silver ETF, with more downside to a full tag of the trendline & ultimate break below it likely IMO. Previous (last night’s) & updated 60-minute charts below.
SI 60m Jan 29th
SI 60m Jan 30th
Additionally, the expected sell signal on /GC (gold futures) was also triggered on the dual support break, with the first target effectively hit. Next objective short-entry, re-entry, or add-ons to come on solid break below the 4926 support and/or a bounce to the recently taken out resistance levels. Previous (last night) & updated 120-minute charts below.
GC 120m Jan 29th
GC 120m Jan 30th
To reiterate: Both gold & silver have effectively fallen close enough to those initial targets to consider them “hit” & therefore, see the buyers step in & cause a decent bounce back to those nearby overhead resistance levels (recently broken support levels). If so, any bounce back to those resistance levels would provide an objective re-entry (for those that booked profits), add-on, or new short entry. However, I favor more downside today for a full hit & possible break of those support levels at this time.
Remember, the short on silver (and the miners or gold) is both a short-term, counter-trend correction trade as well as a potential parabolic blow-off top trade with much larger profit potential. Each trader should have a trading plan that meshes with their own unique outlook for the metals, risk tolerance, & trading style.